The Rise of Puffer Finance: Second-Largest Ethereum Liquid Restaking Protocol
The Ethereum liquid restaking protocol known as Puffer Finance has achieved a milestone, with a total value locked (TVL) of $850 million, making it the second-largest protocol of its kind. Launched on February 1, Puffer Finance allows users to deposit ether and receive a liquid staking token that earns yield from ETH staking and restaking.
Puffer Finance quickly gained traction, surpassing similar projects Renzo and Kelp DAO within days. It currently sits just behind the market leader, ether.fi, which boasts a TVL of $1.04 billion. The protocol’s success may be attributed to its five-stage points program that incentivizes user adoption and interaction.
The Anti-Slashing Tool: Enhancing Capital Efficiency
Puffer Finance’s anti-slashing tool is another factor contributing to its growing popularity. This feature reduces the risk of slashing for validators while improving capital efficiency. Charles Booth from Parsec Finance believes that the rapid growth in TVL indicates Puffer Finance’s potential to become the leading native liquid restaking protocol in the market.
Prior to its launch, Puffer Finance secured investments from prominent firms such as Binance Labs, Brevan Howard Digital, Jump Crypto, and Lightspeed Faction. With a $5.5 million seed round and a $650,000 pre-seed round, the project has attracted significant funding.
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